Onerous ground rent - deed of variation or lease extension

sad2k

do i need to take a valuation first and then go talk to a solicitor with it?

eddddy

sad2k said:

do i need to take a valuation first and then go talk to a solicitor with it?

You need a valuation before the solicitor can serve the section 42 notice.

But before making any decisions, phone around both solicitors and valuers for quotes (and discussions) and to help decide who you'll go with.

Some solicitors/valuers have 'buddies' that they like to work with. I also came across a valuer who would serve the section 42 notice himself, without using a solicitor. So you can consider whatever suggestions are made.

sad2k

got it thanks

PSC77

Hi, i can start a new thread if needs be but..
I am in a similar situation (with an onerous ground rent which can double every 25 years) although have agreed to enter in to a deed of variation.  The landlord however has refused and i am now left with a buyer who will not move forward without it and a  landlord who is refusing to let it move forward.  This is being requested by the buyer/buyers solicitors, apparently his lender is happy to lend.
£325 per year at the moment with another 12 years until it changes, i owned the property from plan so this is the original sum.
Any advice appreciated, this has been going on since December and am close to the end of my tether 

sad2k

i thought doubling every 25 yrs is not really onerous?

PSC77

sad2k said:

i thought doubling every 25 yrs is not really onerous?

I agree, so does seemingly everyone in the chain apart from the buyer who is concerned about the resale.  What i am worried about it saying OK you have taken too long to do this, put it back on the mkt then have to pay for management packs again and potentially have another buyer who wants the DofV.  Have written to landlord to see why they are refusing (likely as you say) then consider my options.  Was just keen for some other points of view.
Thank you sad2k

eddddy

PSC77 said:

Hi, i can start a new thread if needs be but..
I am in a similar situation (with an onerous ground rent which can double every 25 years) although have agreed to enter in to a deed of variation.  The landlord however has refused and i am now left with a buyer who will not move forward without it and a  landlord who is refusing to let it move forward.  This is being requested by the buyer/buyers solicitors, apparently his lender is happy to lend.
£325 per year at the moment with another 12 years until it changes, i owned the property from plan so this is the original sum.
Any advice appreciated, this has been going on since December and am close to the end of my tether 

You don't have many choices really. You could:

• Offer the landlord more money for the deed of variation (as well as cover their legal costs)
• Do a statutory lease extension to get the ground rent down to zero
• Start the statutory lease extension process, for the buyer to complete and pay for. I guess the buyer would want a price reduction to cover the cost, the fees and the hassle. (Assuming that the mortgage lender is happy.)
• Look for another buyer

As mentioned above, a statutory lease extension would take 6 to 18 months - so it's unlikely that your existing chain would wait for that to complete.

Incidentally... did you tell your landlord that you want the Deed of Variation because you have a buyer/chain waiting? That's sometimes a bad move, tactically. The landlord might see an opportunity to fleece you because you are desperate.

sad2k

PSC77 said:

sad2k said:

i thought doubling every 25 yrs is not really onerous?

I agree, so does seemingly everyone in the chain apart from the buyer who is concerned about the resale.  What i am worried about it saying OK you have taken too long to do this, put it back on the mkt then have to pay for management packs again and potentially have another buyer who wants the DofV.  Have written to landlord to see why they are refusing (likely as you say) then consider my options.  Was just keen for some other points of view.
Thank you sad2k

is your ground rent / property value > 0.1% as well? any thoughts from your buyer on that?